Government relations now key priority for AFA

The Association of Financial Advisers (AFA) has created a government and policy committee it said would ensure its members’ interests are communicated to the Government and the regulator.

The committee will consist of AFA members and other industry experts, a statement from the AFA said. The committee will work on key issues facing advisers and their clients, including the provision of advice relating to superannuation and insurance, and lobby on government policies in the interest of clients.

AFA president Jim Taggart said representation to government will be one of the AFA’s key priorities in coming years.

Taggart said in light of the global financial crisis, “the need for common sense and practical responses from advisers to government and the regulator are now more important than ever”.

Michael Murphy will act as chair of the committee. Murphy said he would call on the Government to increase consumer literacy and education and improve education requirements for advisers. The AFA is also seeking to ensure the Australian Securities and Investments Commission (ASIC) has the “powers to qualitatively assess product providers rather than focusing on ensuring their documents are legally acceptable”. The AFA also wants the Government to ensure that disclosure documents are truly clear, concise and effective, as well as increase the superannuation guarantee to 15 per cent.

Christina Kalantzis, director of Alexis Compliance & Risk Solutions (Alexis), has also been appointed as a strategic partner to the committee and committee co-chair.

AFA chief executive Richard Klipin said Kalantzis would be well placed to help the AFA and its members, having been an industry expert to ASIC for financial services reform, including fee and risk disclosure.

Other committee members include Jennifer Brookhouse from Zurich, Andrew Lowe of ING and Tim Cobb from Aviva.